Special

[wmoebis]

Came across a elev that has a "special" on the exact commodity that I have. Looks like they are paying just a bit more for one certain month (next month).
I have never sold into a special before what should I expect? Is this just a sign prices are rising and they want to catch some quick grain first or do they need the grain for that month and willing to pay a bit more? Will it move in that month or is it just games?

[westernvicki]

Generally means they need to fill and that is the price they figure will buy to fill.

Which also can mean they are not buying much at regular prices.

Farmers trigger points are key to filling a position.

As for long term price trends: well supply and demand on the commodity is key but indeed grower expectations are a factor in local markets to trigger sales.

[charliep]

You didn't say what the commodity was but I will guess a pulse or feed grain. I agree with westernvicki in that likely someone trying to put together the logistics on a sale they have made. A tough job in a commodity with no futures market, limited storage and a challenged transportation system.

Is the price close to your target/where you would sell? Did you counter if the price was not your target? I would do the business today for $___ per tonne. Not a GPO you leave with the buyer but an offer for the buyer to respond to within a short period. Does this give the buyer information - absolutely. The common good is they have more confidence in making sales to export customers and planning the logistics to make the sale happen.

[gustgd]

One thing I would look into on these specials is at what price is overage done at?
We had a recent experience with red Lentils where we were filling a contract for .34c done last month. All week they were "triggering" .37c/lb on overage
To get full trucks we had about 4.5 tonnes or about 10000 lbs overage.
We were then notified that overage is now .36c as that's where the buyer was triggering.
It seemed very arbitrary as to what was being picked up. All the while posted prices are at.34

Just something to check

[wmoebis]

Okay that is exactly what I thought!
Now to be honest. In the last week of Nov an elev had a special on yellow peas for the month of DEC only. It was on my target price that I was willing to accept for immediate delivery as I needed cash before year end to pay some unforeseen very urgent medical bills.

I made it very very clear to manager that it had to be sold before year end, he said yes they were shipping lentils that week and since there was a special on, they would be likely calling in peas next, I even asked him if I could line up trucks and he said no he would phone me and keep in touch.

Well here it is Coming up to second week of Feb and not one word from them. I did phone and all I got was a bull story about trains and bad order cars.

So what should have I done diff. Not signed contact? Don't trust a word they say and get everything in writing. Is this what marketing has come to? You can't trust a word they say. They have had a train every week so they have had bin room but they choose to call in other product.

Now the price of peas is up to $8.50 I need that much now to cover the interest on the bills, that would be my target price today, and when I asked them if I could get out of contract so I could sell else where, they said I would have to pay dif between $7 and today's price.

So be it I guess. I guess since they are not in a hurry to call it in they won't mind if my truck's end gate only opens about 1/2 an inch, just enough for the peas to trickle out, once I'm over the pit and it takes me 8 hrs to unload my truck while the line up
waits.

Of course if they raise a stink and want it unloaded faster I can pull the other lever and open silage end gate.

And I couldn't care less what they or anyone else says because that will be my last load I ever deliver there. I don' think there is any law that states how fast I have to unload my truck, but there is a law that says they have to accept my grain in the order it is delivered when they have room.

So Vicki, Charlie and Gust thank you for your responses and what would have you done different?

[bucket]

You should have cancelled the contract the day after they didn't take them when you expected.

I am still waiting to deliver Sept 14 peas.

Next time when they cut me off I am cancelling any remaining part of the contract. Then there is no confusion about moving it somewhere else. Or later at a higher price.

[Hopalong]

What happened with penalty clause supposedly ordered by Grain Commission?

[checking]

Do not say you will never deliver another load to them. Say it will be a long time before you ever deliver another load to them. Options are sometimes necessary.

As to "specials", probably hidden in that term is a reference to farmers with at least a 130 IQ! You deserve a laugh since there is no humour in medical bill payments.

[charliep]

Actually no such thing as a special - just a price. Verbal commitments mean nothing - its what is in the contract that counts. The CGC supposedly beefed up contract terms (or at least the opportunity to put more clarity around contract delivery windows and penalties but I am not sure what this means in practice.

Lots of farm organizations have looked at standardized contracts/alternatives including APAS in Saskatchewan and the Canadian Canola Growers Association. I think the Saskatchewan Pulse Growers have also done work.

If you really want firmer delivery commitments, them with industry to move to a cash clearinghouse. WBGA did a good work to setting the stage for in the past but no traction to implement.

[food4u]

I had a contract for Sept. delivery of winter wheat that was still not taken on Jan.1( you have to give them 90 days to take delivery)so I made one call to the CGC compliance officer and guess what????They called my winter wheat later in the week.

[bucket]

Delivery commitments can't work unless the transportation system is working.
It's not and never will. They can't implement a clearing house.

And to be the market isn't working. Graincos texting for gpo/tpo for a 3cwad at 7 bucks. Why not go to the market or create one on the exchange?